Steel companies issue warnings on output

Steel companies issue warnings on output

At a time when most commodities are at or near record high prices, the worldwide steel sector is beset by profit warnings and falling prices.

The American Iron and Steel Institute has released data showing that declining demand resulted in a drop in United States steel shipments of 7.6 percent from March to April.

On Monday Nucor, the biggest steel producer in the United States, issued a warning that second quarter profits will fall below expectations due to decreases in prices and demand.

Meanwhile, the International Iron and Steel Institute released data on Tuesday showing that Chinese steel production in May was 297 tonnes, which was 37.5 percent higher than last year at the same time.

That caused one analyst to express concern that higher steel production in China might decrease that nationa��s demand for imported steel and that it might even resume steel exports to Europe.

Other analysts, however, believe that strict controls in China will hold down that nationsa�� capacity to produce steel, lessening the chances that it would turn to exporting that commodity.

Still, share values in Europe have been falling, with Corus down 4 percent, Arcelor falling 1.9 percent, and ThyssenKrupp losing 1.5 percent.

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